A budget deficit of N249.10 billion was recorded in the first quarter of the year, the Minister of State for Finance Remi Babalola has said.

The minister said this yesterday in Abuja at an interactive session organised by the Federal Inland Revenue Service (FIRS) for State Commissioners of Finance. He was represented by the Accountant-General of the Federation (AGF), Ibrahim Hassan Dankwambo.


He said between January and March, N979.25 billion was generated by revenue generation agencies as against budget target of N1.228 trillion. "A deficit of 249.10 billion or 10 percent of the budget has already occurred", the Minister said.

This year, Federal Government budgeted N3 trillion for the country with an estimated deficit of about N800 billion.

FIRS has recorded a shortfall of N124 billion in the first quarter, while the Nigerian Customs Service is estimated to have recorded a shortfall of about N76.975 billion.

Revenue shortfall from the Nigerian National Petroleum Corporation (NNPC) is not certain. But the Minister of Petroleum, Dr. Rilwan Lukman estimated the country's oil production at 2 million against OPEC quota of 2.5 million bpd.

The Minister of State for Finance, Remi Babalola said that crisis in the Niger Delta is contributing to the dwindling revenue from crude oil.

He said unless efforts are put in place to ensure discipline in expenditure, key assumptions in the 2009 budget will not be realised.

President Umaru Musa Yar'adua has said that he may not be able to implement the 2009 budget up to 100 percent because of dwindling revenue.

The National Assembly is criticising the President for implementing a different budget from the one they approved.

Babalola said as a result of the economic meltdown, the performance of all revenue generating agencies in the 2009 is witnessing downward turn.

He said: "For example, between January and March 2009, the sum of N979.25 billion was generated when compared to the budgeted sum of N1.228 trillion, a deficit of N249.10 billion or 10% of the budget has already occurred."

Comparing the current situation with last year, the minister said four major revenue generation agencies collected the sum of N7.65 trillion in 2008 as total revenue against the budget of N6.671 trillion, resulting in surplus of N98.232 billion or 15 percent increase.

"FIRS in particular generated N2.97 trillion of the total collection or 39%. The performance of FIRS is therefore 31% over and above their 2008 budgeted figure", he said.

Chairman of FIRS Mrs. Ifueko Omoigui Okauru said the current slight rises in the prices of oil should not provide the country with comfort but rather the Nigeria should concentrate efforts on improving internally generated revenue through tax.

"Admittedly, oil prices have picked up (to over $60 per barrel, from a prior low of just above $40 per barrel earlier this year) however, this should not provide comfort to us, as we are well aware of the volatility of oil prices", she said.

Chairman, Forum of Commissioners of Finance of Nigeria who is also the Commissioner of Finance, Taraba State, Rebo Usman said the real solution to the dwindling economic fortunes of government lies in its ability to harness potential sources of economic activities.

He said: "We must appreciate, for example, that individuals and companies can only pay tax when they are able to earn incomes, either through salaries or profits made from employment or business activities."

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Sabastian G James

Sad.
I would have not mind if the deficit was all cos they spend the money on something meaningful and traceable, but our leaders just share the money and borrow join to be shared again.
The states got allocations and nothing to show for it, only handful of states are doing stuff.
I am yet to read of any local govt that did anything, so what is the allocation money for?

President Umaru Musa Yar'adua has said that he may not be able to implement the 2009 budget up to 100 percent because of dwindling revenue.


Question to YAR A 'DO NOTHING, 7 POINTLESS AGENDA VISIONLESS 2020

What did you do when there are no shortfall ?

Answer : nada, zero

I hope you will not start to borrow to fund your stealing?


President YAR A'LIAR stop your VISON ZEROZERO , all you , your ministers , governors, local government charimen and PDP do, is to add zero zeros at the back of any digit and all you arrive at is millions, billions and trillions in sotlen National money.

EXECUTHIEVES IS TIME FOR YOU TO GO. 2 YEARS IS ENOUGH FOR MADNESS AND NO ACTION.